Qantas is one of the oldest and most recognized long distance airlines in the world. The company was founded in Queensland on November 16, 1920 by two veterans of the First World War: Lieutenants Wilmot Hudson and Paul McGinness (Qantas, 2008). After a long period of state ownership, and the end of domestic flight restrictions, the airline is now consolidating an increasing number of clients due to the collapse of domestic competitors, and the creation of low cost subsidiary companies. It is now the Australian "flag carrier" airline and one of the few survivors of the turbulent aviation history of the 20th century. The corporate results for the year ended on the 30th of June 2008, confirmed the upward trend in the company profits, with a 46% increase in comparison with results of 2006/2007 (Qantas, 2008). To remain profitable with revenues totaling U$ 16.2 billion while most commercial airlines are announcing significant losses, is a substantial achievement.
Nevertheless, several concerns have arisen about the sustainability of the business in recent years. In June 2008 passenger traffic registered a growth of only 3.8% which is the lowest in 5 years (IATA, 2008). This anemic performance is a direct consequence of the global economic slowdown, and is directly affecting the performance of the tourism industry. Some analysts consider this as an appropriate time for Qantas to search for a strategic merge. Even chief Executive Officer Geoff Dixon suggested that the company is not going to be able to survive on its own. (Wai-Yin, 2008)
Online readingwith our online reader
Content validatedby our reading committee